Glossary

Cloud cost glossary

Plain-language cloud cost definitions for FinOps, allocation, showback, chargeback, anomalies, tagging, and multi-cloud teams.

Tovin.io's glossary defines cloud cost vocabulary for engineering-led teams — FinOps, showback, chargeback, anomalies, allocation, tagging, untagged spend, and the multi-cloud cost terms that come up on weekly cost reviews.

28 of 28 glossary ·

Glossary

What Is FinOps?

Define FinOps in plain language, see how small engineering teams use it, and learn the first cloud cost visibility steps.

Read
Glossary

What Is Cost Allocation?

A short definition of cloud cost allocation and why tags alone are rarely enough.

Read
Glossary

What Is Showback?

Showback definition for cloud teams that need accountability without internal billing.

Read
Glossary

What Is Chargeback?

Learn what cloud chargeback means, when internal billing helps, and why small teams often start with showback first.

Read
Glossary

What Is Multi-Cloud?

Multi-cloud definition for teams running production across more than one provider.

Read
Glossary

What Are Cloud Unit Economics?

Understand cloud unit economics, including how SaaS teams connect infrastructure cost to customers, usage, and gross margin.

Read
Glossary

What Is A Cloud Tagging Strategy?

A practical definition of cloud tagging strategy for allocation.

Read
Glossary

What Is A Cloud Cost Anomaly?

Define cloud cost anomalies and review common examples such as logging loops, idle instances, and transfer spikes.

Read
Glossary

What Is Untagged Spend?

Understand untagged cloud spend, why it blocks allocation, and how teams should review and reduce it.

Read
Glossary

What Is Cloud Cost Management?

Cloud cost management definition for small engineering teams.

Read
Glossary

What Is A Commitment Discount?

Plain-language definition of a commitment discount — AWS RIs, Savings Plans, GCP CUDs, Azure Reservations — and why it complicates allocation.

Read
Glossary

What Is A Blended Rate?

Plain-language definition of an AWS blended rate, how consolidated billing redistributes commitment savings, and why it confuses per-account allocation.

Read
Glossary

What Is Egress Cost?

Plain-language definition of cloud egress cost — the charge for data leaving the provider's network — and why it's the most underestimated cost line for SaaS teams.

Read
Glossary

What Is Reserved Capacity?

Plain-language definition of reserved capacity — pre-purchased compute or database capacity at a discounted rate — and how it differs from Savings Plans.

Read
Glossary

What Is Kubernetes Cost Allocation?

Plain-language definition of Kubernetes cost allocation — splitting cluster cost across namespaces, workloads, and labels — with and without an in-cluster agent.

Read
Glossary

What Is Cloud Cost Anomaly Detection?

Plain-language definition of cloud cost anomaly detection — automated alerts for spend that doesn't match normal usage — and what makes one useful.

Read
Glossary

What Is The FOCUS Spec?

Plain-language definition of the FOCUS Spec — the FinOps Foundation's open standard for cloud cost and usage data — and what it means for multi-cloud tools.

Read
Glossary

What Is Rightsizing?

Plain-language definition of rightsizing — adjusting cloud resource size to match actual usage — and why allocation should precede it.

Read
Glossary

What Is Cloud Capitalization?

Plain-language definition of cloud capitalization — when SaaS / cloud spend is treated as a capital asset under GAAP and IFRS, versus when it's expensed.

Read
Glossary

What Is Cloud Cost Variance?

Plain-language definition of cloud cost variance — the difference between forecasted and actual cloud spend — and how finance teams analyze it monthly.

Read
Glossary

What Is Cloud COGS?

Plain-language definition of cloud Cost of Goods Sold — the portion of cloud spend that flows into COGS for SaaS, and why it matters for gross margin.

Read
Glossary

What Is Cloud Financial Management?

Cloud Financial Management (CFM) is the finance-led discipline of forecasting, allocating, and reporting cloud spend — and how it differs from FinOps.

Read
Glossary

What Is FP&A For Cloud?

FP&A for cloud applies financial planning & analysis discipline — budgeting, forecasting, and variance loops — to volatile, usage-driven cloud spend.

Read
Glossary

What Is An Enterprise Discount Program (EDP)?

The AWS Enterprise Discount Program (EDP) and equivalent multi-year commit programs at GCP and Azure — what finance teams should know before signing one.

Read
Glossary

What Is Month-End Cloud Close?

Month-end cloud close is the finance workflow of reconciling multi-vendor cloud bills, posting journal entries, and producing variance reporting.

Read
Glossary

What Is Cloud Spend Forecasting?

Cloud spend forecasting: the methods finance teams use to predict variable cloud bills — run-rate, bottom-up, and growth-rate models.

Read
Glossary

What Are Cost Allocation Models?

The common cloud cost allocation models — direct, tag-driven, account-driven, proportional, and stepwise — and when each one is the right choice.

Read
Glossary

What Is SaaS Gross Margin?

Plain-language definition of SaaS gross margin — revenue minus Cost of Goods Sold — and how cloud spend drives the headline number boards and investors evaluate.

Read

Frequently asked

What is the glossary for?

Show answerHide answer

Plain-language definitions of the cloud-cost vocabulary engineering-led teams hit on weekly reviews — FinOps, showback, chargeback, anomalies, allocation, tagging, blended rate, commitment discount, and the multi-cloud variants of each.

Why is each entry so short?

Show answerHide answer

Each glossary entry leads with a one-sentence definition (the AI-search answer target), then expands with examples and the related guide so readers and answer engines can both pick the right level of depth.